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Investment Into An Armenian Wind Farm

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Investment Into An Armenian Wind Farm

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Postby Armaec energy » Wed Sep 03, 2008 2:55 pm

Armaec UK Ltd.

Armaec UK Limited is a developer of renewable energy generation projects, specialising in wind farms in emerging markets across the world. The wind energy sector is experiencing high growth as demand for clean, safe energy is on an increase globally. Increasing demand for energy due to the high growth of economies, supportive regulatory framework and good wind speeds make countries such as Armenia, India and South Africa favourable countries to develop wind farms.

Armaec UK Limited is aiming to develop several wind farms in these countries with a long term strategy to generate a total capacity of 1,500 MW by 2015. Operations within each country will be under the umbrella of a locally incorporated subsidiary of Armaec UK Limited, with each wind farm project being undertaken through an SPV which will be under the control of Armaec UK Limited.

Investors are invited to invest in individual SPVs. It is anticipated that each Armenian wind farm will have an output capacity of 100MW. The directors of each of the SPVs will be the directors of Armaec
UK Limited, enabling those directors close supervision and conduct of the operation of each SPV, while at the same time allowing each project to be developed and operated according to its own merits.

This offer is an invitation to purchase shares in Armaec Wind Farm CJSC, an SPV intending to develop a 100MW wind farm in the Ztaqhunaiz Ridge, near Aparan City in the Republic of Armenia.

The SPV is issuing shares for 40% of the equity for an investment of £350,000 from seed investors.

60% of the project company, will be held by Armaec UK Limited's wholly owned subsidiary in Armenia, Armaec CJSC. Please see group structure on page 9.

At the end of year 1, after the wind resource study is completed, private equity investment will be sought from institutions to start the construction of the wind farm. Armaec CJSC and the seed investors will jointly dilute their shareholdings on subscription by the private equity institution which
will invest 30% of the total project cost. The private equity institution will hold 80% equity in the SPV, post investment1. Armaec CJSC will hold 12% equity and the seed investors between them will hold 8% of the SPV, post investment.

Thus an investor who has purchased shares for £50,000 will hold an equity of 5.71% in the SPV. When the wind resource study is completed and the private equity institution invests 30% of the total project cost (circa £100 million for each 100MW wind farm), the seed investor will hold 1.14% of the enlarged share capital.

Forecast cumulative return on investment for a seed investor from dividend distribution based on certain assumptions of the Directors is expected to be circa 83% for the first 5 years. This is based
on an anticipated dividend distribution policy of 50% of post tax profit and the distribution starting from the fourth year after the commencement of construction of the wind farm.

If you are interested in receiving further documentation about this unique offer, please contact Elom Bell, Business Development Director on +44(0) 1895 234 484 or email- elom @ armaecenergy. com


Armaec energy
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